Tata Group-owned Air India has introduced a phased fuel surcharge on most domestic and international flights starting March 12, 2026. This step comes as Aviation Turbine Fuel (ATF) prices soar due to Gulf geopolitical tensions, raising overall operating costs.
Air India said that ATF makes up nearly 40% of an airline’s operating expenses. Rising fuel prices, along with high Excise Duty and VAT in major cities such as Delhi and Mumbai, are putting pressure on operating costs, leading to fare adjustments, the company said in a press release.
Air India will introduce the fuel surcharge in three phases for domestic and international routes, including its low-cost subsidiary Air India Express. Phase 1 begins on March 12, 2026, with later phases mid-March and for Far East markets.
Domestic Indian flights will see a fuel surcharge of ₹399 for new bookings from March 12, 2026. Previously, no surcharge applied, making this the first implementation to offset rising jet fuel costs and taxes impacting airline operations.
Flights to SAARC nations will also carry a ₹399 surcharge. West Asia and Middle East destinations, such as the UAE, will face a $10 surcharge. Southeast Asia rates rise from $40 to $60, while Africa climbs from $60 to $90.
Flights to and from Singapore, which were earlier exempt from fuel surcharges, will now be subject to charges from Phase 1. This aligns Singapore routes with other Southeast Asian destinations, reflecting the wider impact of rising fuel costs.
Phase 2 begins March 18, 2026, covering Europe, North America and Australia. Fuel surcharges will rise from $100 to $125 for Europe and from $150 to $200 for North America and Australia, applying to all new bookings on these routes.
Air India will also announce Phase 3 soon, covering Far East markets like Hong Kong, Japan, and South Korea. Tickets booked before the surcharge take effect will remain unchanged unless passengers change dates or itineraries, requiring fare recalculation, the company said.
